Anker's suppliers made a fortune!

Suppliers who seize the right opportunity.

With small commodities such as power banks, data cables, and headphones, Anker has made a lot of money in recent years. In 2023 alone, Anker's annual revenue reached 17.507 billion yuan and its net profit was 1.615 billion yuan, and both figures are in a state of growth.

Benefiting from this, suppliers who have a "lips and teeth" relationship with Anker were also quickly brought to the fore, and some even began to strive for listing, which can be said to be the representative of making a fortune in silence.

Backed by Anker, it has been the world's number one in shipments for two consecutive years

Starting from DVD and becoming a leader, Tongli Technology chose to transform into acoustic products after seeing the decline of DVD. It currently focuses on smart products such as DVD, Bluetooth speakers and soundbars.

Among the products that the company has been deeply involved in, the most popular one is the speaker product field. In 2021, the shipment volume of Bluetooth speakers under Tongli Technology was 8.26 million units, accounting for 14.70% of the global market share; the shipment volume of another product, Soundbar, in 2021 was 3.81 million units, accounting for 18.60% of the global market share.

In 2022, although the shipments of the two major product segments decreased, the fluctuations were small, accounting for 14.48% and 18.1% respectively. The high shipments not only contributed revenue and profits to Tongli Technology, but also allowed it to successfully rank first in the global audio product shipments for two consecutive years.

Not only speakers, but also wearable devices, which are the second largest product line of Tongli Technology, should not be underestimated. Take TWS headphones as an example. The sales volume has grown rapidly from more than 500,000 pairs in 2019 to more than 5.3 million pairs in 2022. On the other hand, it also indicates the prospects of the wearable device market. It is expected that global shipments will reach 645 million units in 2027, with an average annual compound growth rate of 5.4%.

Relying on several major product lines, Tongli Technology 's shipments of speakers, wearable devices, etc. in 2022 exceeded 1 million, revenue exceeded the 10 billion yuan mark, and net profit reached 372 million yuan . In 2023 , its revenue and profit have made a qualitative leap, and the profit in the first three quarters almost caught up with the full year of 2022.

The reason why Tongli Technology has achieved its current success is inseparable from the support of its cooperation with big sellers. It is reported that when Tongli Technology was first established, it maintained cooperation with big sellers such as Philips when producing DVD products, becoming a leader. After the transformation to acoustic products, it became a partner with industry leaders including Amazon, Anker Innovations, Harman, etc.

As the fifth largest customer of Tongli Technology , Anker's purchases in 2020 amounted to RMB 400 million, mainly in the speaker and AloT categories; Alibaba's purchases of AloT products were much higher than Anker's. In 2022, Tongli Technology also became a supplier to Amazon, with a purchase amount of RMB 365 million, mainly in the field of wearable devices.

Being able to become a supplier to many industry giants, Tongli Technology has some capabilities.

On the supply side, Tongli Technology has significant advantages. It has established five manufacturing bases in areas including Huizhou and Beihai to form its own competitive advantage. At the same time, it has established several subsidiaries in Vietnam to reduce production costs and increase product gross profit margins. In terms of R&D expenditure, its share has exceeded 5% for many years. The supply chain has worked hard to accumulate its own multi-layer competitive advantages. It is no wonder that Tongli Technology has stood out from its peers and has been favored by big sellers.

Profits doubled continuously, audio manufacturers made a fortune

As a well-known manufacturer in the industry, Tianjian has been committed to various types of headphone products such as headsets and TWS and other products since its establishment 30 years ago. Recently, Tianjian has attracted the attention of many industry insiders with its frequent surge in performance.

Data shows that Tianjian shares achieved good growth in both revenue and profit in 2023. Specifically, its revenue was 1.756 billion yuan, a year-on-year increase of 55.89%; the net profit attributable to shareholders of listed companies was 136 million yuan, a year-on-year increase of 103.58%.

The surge in performance also continued into the first quarter of this year, with revenue of 414 million yuan, a year-on-year increase of 52.21%; profit was 40.35 million yuan, a year-on-year increase of 111.24%.

One of the important products that has driven the huge increase in profits of Tianjian Shares is headphones. In 2023 alone, the company earned about 1.6 billion yuan in sales from headphones and sold 18.766 million headphone products. It is precisely this product that has attracted a number of big-selling cooperations.

Leading companies including Anker, Harman, Motorola, and Decathlon are all its customers. The most famous of these is Anker, which is the company's second largest customer. In 2022, Anker's procurement amount reached 71.89 million yuan, a year-on-year increase of 13.49 times.

Being able to reach cooperation with multiple big sellers is, on the one hand, the company's own strength is top-notch in the industry, and on the other hand, it can meet the needs of big sellers in many aspects. As the saying goes, lips and teeth are cold, and big sellers and suppliers usually prosper together and suffer together.

The love-hate relationship between big sellers and their suppliers

The big sellers eat meat, and the suppliers drink soup; when the big sellers have problems, the suppliers ' "fish pond" is destroyed. There are many cases like this. Langtaitong Technology mainly develops, produces and sells lithium-ion batteries, nickel-metal hydride batteries and PACK battery packs, which are mainly used in energy storage, 3C digital products and other fields.

It is precisely relying on these products that Langtaitong Technology has reached cooperation with 18 companies, supplying them with products, even including some raw materials and auxiliary materials. As a result, its revenue and profits have maintained steady growth. Today, Langtaitong has gone from a supplier to the stage of listing, which can be regarded as another successful case.

The performance report previously released by Bawei Co., Ltd., the supplier behind TikTok's beauty brand SKINTIFIC, showed that its total revenue and profit both increased in 2023. It is worth mentioning that in March of this year, it was successfully listed on the Beijing Stock Exchange, becoming the first beauty manufacturing stock on the Beijing Stock Exchange.

Behind the success of Bawei Co., Ltd. is the sincere cooperation with brands. It is reported that Bawei Co., Ltd. has maintained cooperation with more than 1,000 cosmetics brands including Unilever and HBN. Among them, SKINTIFIC, a beauty brand under Guangzhou Feimei, is the global sales champion of TikTok Shop and the largest customer of Bawei Co., Ltd., contributing more than 60 million in revenue.

But not all suppliers behind big sellers are so lucky. Due to the "critical illness" of big sellers, disputes continue, and many suppliers even go bankrupt. Cooper was once well-known in the industry and had maintained cooperation with big sellers including Zebao.

However, the good times did not last long. The big seller had its own problems and began to default on payments, resulting in a large backlog of finished products in Cooper's warehouse. The long-term vicious capital cycle broke Cooper's capital chain, and finally it had to announce the suspension of production and closure of business.

The long-term solution is for sellers and suppliers to be deeply bound together, with their interests intertwined and both sides to complement each other.

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